Supporting Local Seed Businesses : A Training Manual for ISSD Uganda

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Commissioned by the Integrated Seed Sector Development Programme Uganda - Centre for Development Innovation,

Wageningen UR

SUPPORTING LOCAL SEED BUSINESSES

A Training Manual for ISSD Uganda

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Supporting Local Seed Businesses

Training Manual

Edited by Astrid Mastenbroek, Andrew Chebet, Chris Tanansi Muwanika, Christine Joyce Adong, Francis Okot, Geoffrey Otim, Julian Birungi, Monica Kansiime, Patrick Oyee, Phionah Ninsiima

With support from: Gerard Baltissen (KIT-Royal Tropical Institute)

Published by the Centre for Development Innovation, Wageningen UR (University and Research centre)

This training manual was commissioned by the Integrated Seed Sector Development Programme Uganda - Centre for Development Innovation, Wageningen UR. Th

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programme is funded by the Embassy of the Kingdom of the Netherlands in Kampala, Uganda

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The Integrated Seed Sector Development – Uganda, Supporting Local Seed Businesses, A training Manual for ISSD Uganda, January 2015. Centre for Development Innovation, Wageningen UR.

T + 31 (0)317 48 68 00,

E [email protected], www.wageningenUR.nl/cdi.

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The user may copy, distribute and transmit the work and create derivative works. Third-party material that has been used in the work and to which intellectual property rights apply may not be used without prior permission of the third party concerned. The user must specify the name as stated by the author or licence holder of the work, but not in such a way as to give the impression that the work of the user or the way in which the work has been used are being endorsed. The user may not use this work for commercial purposes.

Photo cover page: The chairman of Latyeng LSB in Gulu explains rice seed production skills to a visiting LSB team from Amolatar District (August 2014)

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Acronyms

AFOSEN Agency for Food Security Network

APF Agri Pro-Focus

ASARECA Association for Strengthening Agricultural Research in Eastern and Central Africa

ATAAS Agricultural Technology and Agribusiness Advisory Services BMC Business Model Canvas

CBO Community Based Organisation CDI Centre for Development Innovation

CIAT International Centre for Tropical Agriculture CIP International Potato Centre

CYMMIT International Maize and Wheat Improvement Centre DSIP Development Strategy and Investment Plan

EAAPP Eastern Africa Agricultural Productivity Programme EKN Embassy of the Kingdom of the Netherlands ERI Environmental Research Institute

FAO Food and Agriculture Organisation (United Nations) FGD Focus Group Discussion

GAL Gender Action Learning

IFDC International Fertilizer Development Centre IITA International Institute of Tropical Agriculture IQCC Internal Quality Control Committee

ISSD Integrated Seed Sector Development LSB Local Seed Business

M&E Monitoring and Evaluation

MAAIF Ministry of Agriculture, Animal Industry and Fisheries MBADIFA Mbarara District Farmers’ Association

MFI Micro Finance Institution

MSIP Multi-Stakeholder Innovation Platform MSP Multi-Stakeholder Process

NAADS National Agricultural Advisory Services NARI National Agricultural Research Institute NaCRRI National Crop Resources Research Institute NARO National Agricultural Research Organization NaSARRI National Semi Arid Resources Research Institute NASECO Nalweyo Seed Company

NGO Non-Governmental Organisation NSCS National Seed Certification Services OPV Open Pollinated Variety

PELIDO Promotion of Enterprises and Livelihood Development Organisation PMR Participatory Market Research

PPB Participatory Plant Breeding PVS Participatory Variety Selection Q&A Questions and Answers

QDS Quality Declared Seed

SACCO Savings and Credit Cooperative Organizations

SF Success Factors

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UGX Uganda Shillings

UPOV Union for the Protection Of new Varieties of plants WUR Wageningen University and Research Centre

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Glossary

Association: An entity comprising of members in a given area and is usually legally registered either at the sub-county, district or at national level.

Basic seed: Seed produced from a breeder’s seed under the control of the plant breeder or his or her agent.

Breeders seed: Seed of a particular variety produced by the breeder (owner) of the variety or his or her agent, under the plant breeder’s supervision and the seed is the source of the initial and recurrent increase in seed production of a variety.

Business model: A plan showing how a business competes, uses its structures, relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it earns.

Business plan: A business plan should lay out your basic idea for the venture, describe where you are now, indicate where you want to go, and outline how you propose to get there with clear evaluation of the viability of the venture as well as success factors. Cash flow: Movement of funds through the business in the form of receipts and payments over a defined period.

Certified seed: A class of seed produced under a certification program from basic seed and can be of two generations namely: C1 or C2.

Creditor: The party to whom a debt is owed. In the case of a loan, the lender is the creditor.

Crop establishment activities: Activities undertaken from germination of seed until the crop is physiologically mature.

Debtor: The party who owes a debt to the business. In the case of a loan, the borrower is the debtor.

Depreciation: The amount of money kept aside each year as a fixed cost to represent the loss in value of a fixed asset with the passage of time.

Detassling means the removal of tassels (male flowers) from a maize plant. A tassel is a male maize flower and it is found on top of the maize plant.

Distribution channel or mechanism: The route or means used to distribute a good from the producer to the consumer of that good.

Enterprise: One or more easily identifiable parts of a business under common ownership or control, for which there are specific potential returns.

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Farmer group: This is an organized group of farmers that has a relatively low number of members very often ranging from about 15 to about 40 people. It may or may not be registered.

Field inspection: An examination of a seed crop, including checking for isolation, hectarage of the seed field, off types, foreign varieties and diseased plants as part of a seed certification program.

Financial management: Refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization.

Foundation seed: Pure seed stocks grown by or under the supervision of a public agency for use in the production of registered and certified seed.

Germinated seeds: Seed lots in respect of which in the course of a germination test have produced seedlings with normal growth characteristics of the shoot and root systems. Goal: A goal is a high level desired result that the LSB wishes to attain once their business is considered a success.

Gross Margin: Value of an enterprise's output less its variable costs.

Group dynamics: Is the study of interactions and forces within small face-to-face groups? This interaction may help or hinders the function of the group.

Harvest and post-harvest activities: Activities undertaken from harvesting to processing of seed until it is ready for the market.

Income statement: A financial statement that shows how the business is fairing by showing how much net profit is earned.

Isolation distance: The required distance or time between two crops of the same species or between two crops of too closely related species to prevent contamination either mechanically or by pollination.

Label: A tag or identification tag or mark affixed on a container to identify a seed. Labeling: The process of affixing a tag or identification mark so as to ensure correct identification of any container of seed.

National Seed Certification Service: The body established by section 8 of the Seed and Plant Act 2006 and is responsible for all matters related to seeds.

National Seed Testing Laboratory: An official seed testing laboratory, which is designated by the Minister to carry out official seed tests and to issue seed test results in respect of national and international seed trade.

Off type: A plant of the same species which does not exhibit the characteristics of the variety being grown for certification.

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Organisational development: This is a process of building the capacity of different members of the group such that they are able set a common vision and plan activities towards attaining their common vision.

Parental material: The propagating material from which a breeder’s seed is produced. Pre-harvest activities: Activities undertaken from the selection of planting material to actual harvesting.

Post control testing: The growing of plants from seed lots which have been certified to further determine and confirm varietal purity and freedom from disease infection and verify the effectiveness of a certification program.

Purity: The percentage by weight of pure seeds in a given sample as determined by a purity analysis in an official seed testing laboratory.

Profit: Money earned in a business after expenses made in the business have been removed.

Relief seed: Seed needed by and provided to farmers affected by disaster.

Resources: Resources are the financial and non-financial supplies that help to fulfill LSB needs to deliver its business objectives/targets. These include money, the skills, time contributions and services of humans, equipment and materials.

Resource Mobilization: Resource mobilization is the process of identifying and obtaining resources for the Local Seed Business. Local Seed Businesses need both financial and non-financial resources.

Roguing: the act of removing undesirable plants from a seed field.

Seed: Part of the crop used for propagation either as a seed in a botanical sense which is developed from a fertilized ovule or a seedling or other parts such as a corn, cutting, bulb, root, scion, tuber or stem, which is not a seed in a botanical sense and which is used for vegetative propagation.

Seed crop: A crop that is grown for the specific purpose of producing certified seed. Seed Crop budget: A Planning tool used to record the costs/expenses and revenue in a Local Seed Business. It helps the LSB to calculate the profitability of a seed enterprise at Individual seed grower or LSB group level.

Seed grower: An Individual or a body that grows a crop intended to produce seed. Seed health: The degree of freedom from seed borne diseases and pests.

Seed inspector: A person authorized by the Minister to inspect seed.

Seed lot: A specified quantity of seed which measures to a maximum weight prescribed by the ISTA and which is represented by one sample in laboratory seed testing or in

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control plots, and which is homogenous and physically identifiable by a unique reference number.

Seed processing: All the treatments that the seed is subjected to other than laboratory seed testing between harvesting and sale.

Seed production: All the operations leading up to and including final harvesting of the seed from the seed crop field.

Seed quality: The sum of all factors such as varietal purity, seed health, germination, moisture content and vigor which affect the performance of the seed crop.

Seed Replacement Rate: The practice of purchasing the seed of a given variety to protect against yield loss associated with accidental mixture and seed-borne diseases. Seed replacement is one of the two sources of demand for purchased seed, the other being varietal change.

Seed sampler: An officer designated by the Ministry of Agricultureo carry out seed sampling under these Regulations.

Seed storage: A stage in seed conditioning in which seed is maintained under conditions that minimize deterioration.

Seed testing: The laboratory examination of a sample of seed to determine its quality. Seed standard: Any seed which is not grown under a certification program but which may enter the market in case of shortage of certified seed and meets the same laboratory seed testing standards as certified seed.

Test report: A seed testing laboratory report made after testing a sample of seed submitted officially or privately.

Tested seed: An official seed lot in respect of which there are valid laboratory test certificates.

Tilth refers to the soil's general suitability to support plant growth, or more specifically to support root growth. Tilth is technically defined as the physical condition of soil as related to its ease of tillage, fitness of seedbed, and impedance to seedling emergence and root penetration. A soil with good tilth has large pore spaces for adequate air infiltration and water movement and holds a reasonable supply of nutrients.

Twinning visit: Also called “exchange visits” seeks to improve knowledge and practices and integrate the experiences gained into their daily lives in the seed business.

Value proposition: This refers to something of value that the LSBs will provide to their customers to solve their problems.

Variety: A population of plants which have common ancestors and which have certain characteristics and when reproduced sexually or asexually, retain their distinguishing characteristics.

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Vision: A vision is an expression of what we want to see and how we would like ourselves to be in the future. It is a desired state that we aim to achieve.

Weed: Any plant or type of species different from a crop species growing in or near a registered seed crop so as to constitute a threat to the registered seed crop or the seed produced from it.

Weed seed: Seed of any plant or type of species different from a crop species appearing in a registered seed lot so as to constitute a threat to the registered seed lot or the seed to be produced from it.

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Introduction to ISSD Uganda

The Integrated Seed Sector Development programme in Uganda (ISSD Uganda) aims to support the development of a vibrant, pluralistic and market-oriented seed sector, providing smallholder farmers access to affordable quality seed of superior varieties. This will contribute to increased income for small-scale farmers and an increased number of rural households that are seed and food secure. The government of Uganda prioritizes agricultural development as the key approach for poverty reduction, food security and economic development. In its Agricultural strategy (DSIP), it focuses on enhancing agricultural production and productivity, access to markets, creating an enabling environment and institutional development.

An integrated seed sector development (ISSD) programme builds upon the strengths of both the formal (public and private) and informal (farmers and community-based) seed systems and seeks to consolidate them. The programme guides specific interventions in identified seed systems; linking food and seed security to private sector development and aligning and harmonising seed policies, laws, regulations, interventions, programmes and practices.

Local seed businesses (LSBs) fill a gap in quality seed production for crops in which the commercial seed companies are not interested. LSBs may start from the informal sector as farmer groups or entrepreneurial farmers who see business opportunities in the production and marketing of quality seed. At the end of the programme these farmer groups produce and sell quality seed of locally preferred crops and varieties to local markets and operate as local businesses. They are technically equipped, professionally organised, market oriented and strategically linked to achieve commercial sustainability. The ISSD Uganda programme started in 2012 and operates in three geographical areas based on agro ecological zones; namely West Nile, Northern Uganda and Western Uganda. There is close collaboration with the National Agricultural Research Organisation (NARO), a seed expert, an agribusiness expert and a driver based at the zonal research stations of Abi ZARDI, Mbarara ZARDI, and Ngetta ZARDI. Each team works with 10 LSBs. In the second phase of the programme, this number will increase to approximately 100, which will be supported by partner organisations.

At the end of the ISSD Uganda programme, and with the support of Public sector organisations, a process shall be created that will introduce new methods of enhancing effectiveness and efficiency; define complementary roles and create a sustainable mode of operation in supporting other stakeholders in their efforts to produce and market quality seed of superior variety.

It is expected that MAAIF, NARO, NSCS, NAADS, Universities, and others shall increase their collaboration with and work in partnership with commercial seed companies, local seed businesses, farmer organisations and civil society organisations. This collaboration and partnership will specifically be in relation to seed quality control, access to foundation seed, inclusive policy development and the uptake of quality seed by farmers.

Through innovative approaches, a number of bottlenecks in the seed sector, such as seed quality control, access to foundation seed and variety release will have to be resolved at an institutional level. . In these three issues, the above mentioned and other public sector organisations have a clear role to play.

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What makes ISSD Uganda and the LSB approach unique?

1. Selection of entrepreneurial farmer groups and building their capacities without using free hand-outs.

The ISSD programme targets farmer groups that are entrepreneurial and have experience in growing the crops for which they want to produce seed. The programme is realistic in looking at the potential of the groups it works with. If it appears that the group has more social objectives, rather than entrepreneurial, the programme and groups part ways. The ISSD programme invests time in getting to know groups, conducting diagnostic surveys with groups and jointly making action plans to address the weakest aspects through mentoring and coaching. It also offers continuous coaching on key aspects of technical seed production and marketing based on the LSB capacity building plan.

Inspections and verification are done by LSB internal seed quality control committees supported by ISSD and MAAIF to ensure that seed production by LSBs meets quality standards in the field, during processing, storage and marketing. LSBs are linked to other strategic partners such as research organisations for access to foundation seed, markets, credit and extension. ISSD does not provide free inputs. LSB members raise the money to buy foundation seed and other inputs, place orders with breeders themselves, and also find their own markets.

2. Promoting the concept “producing what you can sell”, using customer analysis and planning based on analysis

The common practice in Uganda is to support farmers in producing in bulk and then to link them to markets. Most community based seed multiplication projects focus on seed production but not the marketing component of seed. The unique ISSD approach of first analysing the market before producing the seed, has led to more realistic production volumes that can be sold and manages the expectations of farmers in terms of their role and the role of the ISSD in finding the market.

3. Strategically linking the groups with service providers

The programme invests a lot of time in linking the groups to service providers and allows the groups to make mistakes and learn from them. The linkages with the breeders are important and several groups are at the level where they can maintain the relationships by themselves.

4. Formalising the seed class “quality declared seed” and creating its own label for recognition of LSB seed

Unlike many community based seed multiplication initiatives ISSD also works on bottlenecks in the seed value chains, including quality assurance and providing Government recognised seed labels for the use of LSB seed. Together with the National Seed Certification Service under MAAIF, ISSD is piloting a QDS system that is efficient and affordable.

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5. Promoting innovations by bringing stakeholders together to address bottlenecks in the seed sector.

In the different zones where the programme operates, ISSD brings stakeholders together at LSB level, to specify the roles and responsibilities of each partner of the LSB in addressing weaknesses within the LSB. This brings out the strengths of each partner and becomes a collective action rather than the ISSD “owning” a group. At District level local MSPs are used to identify bottlenecks in the use of Local Seed Businesses and to come up with joint action and innovative ways to address these bottlenecks.

At the zonal level, MSPs focus on seed sector bottlenecks and seed value chain bottlenecks that affect the region and the multi stakeholder platforms bring together the different stakeholders and jointly define innovation projects to address the issues raised at that level.

At the national level, the same process is taking place. The different stakeholder processes are interlinked highlighting the uniqueness of combining the bottom up approach with national level engagement in identifying and addressing issues that hamper the creating of a vibrant, pluralistic and market oriented seed sector.

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Why this manual?

This manual is developed as part of the support to local seed businesses in Uganda and to facilitate the future scaling of the LSB component. Foremost, this manual is based on real experiences from the experts in working with local seed businesses and it provides practical examples based on true stories.

To help illustratethe practical experiences during the first two years of the programme, the seed and agribusiness experts used existing manuals and tools on seed entrepreneurship for smallholder farmers in SSA, and seed. The manual can be used as a training manual but also as a coaching tool for LSBs in their day-to-day need for support. This is why we use the word manual instead of training manual.

To develop the manual two write shops were organized in Kampala in February and October 2014. The ISSD agribusiness experts and seed experts analysed the tools they had used in their training and coaching sessions in 2013 and did a mapping on what was available and what was missing. After the mapping, the experts discussed the format of the manual, the format of each topic, session and the tools to be used, including practical field examples/cases. After the format was agreed on, the experts worked individually and in subgroups to incorporate each training activity (they used in 2013 and 2014) to basically fill in the manual.

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Who is this manual for?

This manual is meant to be used by ISSD experts and trainers/coaches from partner organizations that support the local seed businesses in the out-scaling phase. It focuses on supporting local seed businesses to become commercially sustainable. The manual is self-explanatory, and only requires support through a “training of trainers”. In the manual all the different sessions are developed in such detail that a trainer with a reasonable background in agronomy could follow it step-by-step.

The manual targets farmers and farmer groups interested in agricultural seed production for commercial purposes. The goal of a seed business is to produce and sell good quality seed and to generate income through services delivered to the community. Whatever quantity of seed an entrepreneur can produce, his business is doomed to financial ruin if he doesn’t have adequate management skills.

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How is the manual organized?

The manual starts with a module 1, which describes the ISSD program in general, how to select, coach and sustain LSBs, how to set up an effective M&E system and multi-stakeholder processes at program level. The target groups of this first module are the trainers/coaches from partner organizations who need some background on the approach of the ISSD program before starting to work with the LSBs. This first module is followed by four modules dealing with the four building blocks of sustainable LSBs:

The target groups of modules 2 to 5 are members of Local Seed Businesses in Uganda and any other person interested in ISSD topics.

Each module is subdivided into topics; each topic is composed of different training sessions:

Module

Topic

Session

Topic

Session

Module 1: Selecting, coaching and sustaining LSBs

Module 2: LSBs are technically well equipped

Module 3: LSBs are professionally organised

Module 4: LSBs are market oriented

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Topics are presented as follows:

 Topic No. and name (developing, enhancing, stimulating etc.)  Short topic description (key messages)

 Case story, lesson learned/example from Uganda  Session overview table:

Session No Session name Duration

Sessions:

 Session No. and name (how to, why…..?)

 Learning objective (at the end of this session participants will have learnt…)  Case, lesson learned/example from Uganda

 Content (what is this session about?) + key messages (list of issues not to forget)  Training methods (Q&A, plenaries, group work, field visit etc..)+ tools (+ example

of tool use from Uganda)

 Materials (flipchart, markers etc.)  Advice / notes for the facilitator  Resources (bibliography)

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How to read/use this manual?

This manual is a guide for trainers/coaches who support the development of local seed businesses. It offers content, case stories, examples from the field in Uganda and guidelines/advice to facilitators to prepare and conduct their sessions. The manual will never be used from A to Z. Trainers may propose sessions depending on the progress of the LSBs or the specific needs of LSBs at a particular point in time.

Icons are used throughout to the document to provide guidance to the facilitator: Example from the field

Practical tools

Important content information

Stories, cases and quotes from the field

Methods and games

Plenary session

Group work

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Module 1: Selecting, monitoring and sustaining LSBs

Topic 1.1: Promoting integrated seed sector development

Key messages:

1. Using Local Seed Businesses (LSBs) is one of the ways to increase the availability and access of affordable quality seed to farmers and to contribute to a vibrant, pluralistic and market oriented seed sector.

2. No seed system is better than the other. All systems contribute to the seed sector. 3. The seed sector itself has a value chain as opposed to the produce value chain. On the 13th_{of May 2014, an ISSD Uganda delegation met with the Members of Parliament} on the agricultural committee to explain the ISSD concept and the role that local seed businesses can play in addressing the shortage of affordable quality seed in Uganda. “ISSD is determined to help farmers. Reports indicate that only 13% of the farmers use seeds from formal seed companies, while 87% use their own seeds. We build the capacity of farmers to produce their own seeds”, the Chief of Party of ISSD Uganda elaborated. MPs hailed the intervention: “Seed production in Uganda has been puzzling our committee. Grooming and training farmers in seed production will greatly help us. We really welcome this intervention by the Dutch Embassy”, MP Vincent Ssempijja stated.

The committee chairman, Mathias Kasamba, said: “Uganda needs such interventions to empower farmers in all the key agricultural processes”.

New Vision, May 14, 2014, p.7

Session overview:

1.1.1 What is the ISSD program in Uganda about? 1 hour 1.1.2 What are the ISSD guiding principles? 3 hours

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Session 1.1.1 What is the ISSD program in Uganda about?

Learning objective

 At the end of the session participants will be abale to explain what integrated seed sector development stands for and what the ISSD approach in Uganda implies.

Ngetta ZARDI Director interacting with an LSB in the seed fields in Obanga Ber in Lira district during his monitoring visit to ISSD supported LSBs held in June 2014

LSBs told the Director that, before, they never knew that the ZARDI can be accessed by farmers. “When we passed Ngetta ZARDI by road, we are sure we have arrived in Lira Town”, Okot Oball, a farmer of Wot Anyim, “but now we enter the gate as it as a centre of technology, agricultural information and a source of foundation seed amongst others”. ISSD Uganda newsletter, issue 2, 2014.

Content

Most seed companies in Uganda, forming the formal seed sector, are only interested in crops with high profit margins (higher multiplication ratios). Self-pollinated crops, which are the major food crops, are not normally considered by the formal sector. ISSD Uganda looks at the opportunity of bridging these gaps by engaging farmers in seed entrepreneurship through the Local Seed Business model. When farmers are technically equipped, strategically linked, professionally organized and market oriented, they can sustainably provide quality seed to smallholders farmers at affordable prices. The Local

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Seed Businesses can therefore, engage in multiplication of crops of self-pollinated origin (simsim, groundnut, beans, rice etc.) with linkages to research to provide early generation materials (Foundation seed), a basic input for any quality seed production. With linkages to the Ministry of Agriculture (MAAIF), the LSBs can guarantee the quality of seed they produce and market through proper inspection and quality assurance procedure.

ISSD contributes to agricultural development

Quality seed is a key input for agriculture with an immediate effect on agricultural production and productivity. Integrated Seed Sector Development (ISSD) is an inclusive approach that recognizes and builds upon a diversity of seed systems in the sector. The ISSD approach guides in the design and implementation of seed sector interventions that are coherent with farmers’ agricultural practices. The main objectives are to enhance farmers’ access to quality seed of superior varieties, and to contribute to food security and economic development.

A seed sector is composed of different seed systems

To work with the ISSD approach we need to understand and acknowledge the coexistence of the seed sector’s multiple seed systems. Seed systems can be characterized on the basis of the domains in which they operate (public, private, informal, formal, mixed); the type of crops involved (food crops, cash crops); the type of varieties used (landrace, improved, exotic, hybrid); the type of seed quality assurance mechanisms operational (informal, QDS (quality declared seed), certified); and the active seed dissemination mechanisms (local exchange, agro-input distribution schemes, agro-dealers).

Informal, intermediary and formal seed systems

We can generalize from the diversity of seed systems, three clusters, namely: informal seed systems; formal seed systems; and intermediary systems that are on their way towards formalised regulation. Examples of informal seed systems are the farmer-saved and community-based seed systems. Formal seed systems include public and private seed companies, which may operate at national and at international levels. Local seed business are systems operating in the intermediary cluster. Every country has its own landscape of informal, intermediary and formal seed systems.

Aspect Informal Intermediate Formal

Source of seed Positive selection from previous harvest

Foundation seed from breeders for released varieties.

Positive selection for local varieties

Foundation seed from breeders

Demand for variety Demanded within community

Varieties with a regional demand

Varieties with a national demand

Type of seed Open pollinated or self-pollinated varieties

Self-pollinated varieties and some open pollinated varieties

Hybrid and open pollinated varieties Quality assurance Within groups - informal Internal by quality

control committees, National Seed

Certification Services – Quality Declared Seed

National Seed

Certification Services – Certified seed

Exchange Gifts, barter, local markets

Quality declared seed sold by LSBs

Bulk sales to institutions such as NAADS

Retail, agro-dealers, bulk sales to

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Source: ISSD Uganda

Training methods

 Interactive PowerPoint presentation on the ISSD approach

 Q: What is the main new learning point that you got from the presentation?  Q: How do you see your organisation fit within the ISSD approach?

 Write answers on flip-chart

 Close with a session for questions and clarification

Materials

 Power point presentation on ISSD approach  Flipchart and markers to write down the answers

Advice

 This session can be used as introduction during a Training of Trainers session of several days. Depending on how exposed the participants are to ISSD and LSBs, the duration of the session may vary.

Resources

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Session 1.1.2: What are ISSD guiding principles?

 At the end of the session participants can mention the eight guiding principles and understand how they are interrelated.

“There is not one way of producing quality seed; each seed actor has its own niche and function”

The ISSD guiding principles are:

1. Build programs upon a variation of seed systems and foster pluralism Farmers gain access to seed from different seed systems. For example s/he has his/her own stock of groundnut seed, buys bean seed from the local market, buys hybrid maize seed from a seed company, and buys hybrid cabbage seed from an international seed company. Each system has its own values and limitations and requires a unique approach in strengthening it.

2. Work according to the structure of the seed value chain

A seed value chain covers the process from management of plant genetic resources, variety development, basic seed production, foundation seed production, seed multiplication and distribution and marketing. Operators, services providers and institutions of the enabling environment of the seed value chains differ among crops and between different seed systems.

3. Promoting entrepreneurship and market orientation

Entrepreneurship means making a business out of seed production and distribution. It is market oriented and hence an important incentive for sustainable development. Entrepreneurship can be promoted both in the formal and informal seed systems for private and public actors.

4. Recognize the relevance of informal seed systems

Despite all past public and private efforts in seed sector development, informal seed systems continue to dominate in Uganda, supplying more than 87% of the total seed used by farmers.

5. Facilitating interactions between informal and formal seed systems

Interactions can be facilitated through participatory variety selection, strengthening famers seed management practices at home through seed extension and linkages with formal research and seed technology centre development

6. Recognize complementary roles of the public and private sector

Following the development agenda on seed and food security, the public sector strongly focuses on the production of quality seed for improved varieties for the main food crops. The private sector strives for efficiency and effectiveness in product development for maximizing profit. The private sectorhas a generally good understanding of what the market demands and responds by producing high value seed. The government’s role is to

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create an enabling environment for quality seed production by combining food security and economic development objectives.

7. Support enabling and evolving policies for a dynamic seed sector

The policy framework should support the strengthening of multiple seed systems and not strive single-mindedly for an evolution towards one general presupposed norm or ideal. Appreciating the dynamics of the agricultural sector, these policies need to be able to accommodate changing circumstances.

8. Promoting evidence based seed sector innovation

Through the ISSD approach we promote evidence based seed sector innovation as a guiding principle. We support research and studies providing evidence for the design and implementation of seed sector interventions. Furthermore, we facilitate stakeholder partnerships to jointly experiment with innovative approaches towards solving key seed sector bottlenecks.

Training Methods

 PowerPoint presentation: 1 slide per guiding principle showing the guiding principle and an example from Uganda

 Discussion on the guiding principles and how to apply these in the Ugandan context.

Materials

 ISSD Africa Guiding Principles hand-out  Power point presentation

Resources

 ISSD Africa Guiding Principles ( http://www.wageningenur.nl/en/Expertise-Services/Research-Institutes/centre-for-development-innovation/show/

Comprehensive-programme-integrated-seed-sector-development-in-Africa.htm)  www.issduganda.org

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Topic 1.2: Defining LSB

Key messages:

1. A LSB is a farmer organisation producing and marketing affordable quality seed of varieties that farmers prefer.

2. A LSB has a niche market and a niche within seed systems in producing quality seed.

3. A LSB is has an entrepreneurial spirit when it is motivated to succeed, has a business mind, is able to sell seed and is not afraid to try out new things and take risks.

Example of a LSB profile:

Kigaaga Farmers’ Cooperative Society Limited officially registered at national level as a primary cooperative in 2010. It comprises of 44 members (26M and 18F). The group has a constitution and is governed by the bye-laws of the Co-operative Societies in Uganda. The group has worked with several organisations including Mbarara Farmers Association and NARO (NaCRRI-beans programme), among others. The group is currently involved in the production of two seed crops; potatoes and beans. In addition, the group actively produces and markets bananas collectively alongside other grains.

Seed production & sales: The group planted 6 acres of seed potato (Kachpot 1 & Rwashaki) received from MBADIFA in 2013A. They only harvested 47 bags (as opposed to the expected 150 bags) of seed potato due to drought. They sold 25 bags of seed potato at UGX 65,500/= per bag, giving total revenue of UGX 1,637,500. The other 22 bags were kept for input seed in 2013B. Members of this LSB mobilised funds and were ready to buy foundation seed potato, but it was not available at Kachwekano ZARDI. The ZARDI also faced challenges from the drought that set in unexpectedly last season (2013A) affecting their foundation seed production fields. Thus members of this LSB used seed saved from 2013A as input seed to plant 4.1 acres of seed potato in the present season. Otherwise, they would have planted more, had they received foundation seed potato from KaZARDI. They expect to harvest 102.5 bags of seed potato in 2013B.

Session overview:

Session No Session name Duration

1.2.1 Why LSBs? 30 min

1.2.2 What is an LSB? 1 hour

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Session 1.2.1: Why LSBs?

Learning objectives

At the end of the session the participants shall appreciate the role that LSBs can play in the production and sale of quality seed of superior variety in Uganda.

Good seed comes from far….

During one of the local stakeholder meetings at one of the sub-counties in Acholi region, Okello was lamenting that: “good seed comes from far”. The last time he planted his seed saved from the previous harvest it was not enough and he had to go all the way to the nearest town by bicycle. This was 10 km. He bought 25 kilos of seed but on the way back he got a flat tire and had to walk all the way home. The year before he had bought seed from the local market, but only half of the seed germinated and his harvest was low. He was very happy to hear about the farmer group that is going to produce seed and he immediately asked: “can I buy 36 kilos next season?”

Content

Thirteen percent (13%) of the planted area in Uganda is planted with seed from commercial seed companies (formal organisations) (MAAIF, 2012). This leaves eighty seven percent (87%) of planted area being served by the informal and intermediate seed system including farmer-saved seed and community-seed production schemes such as local seed businesses. As the figure below shows, most farmers obtain their seed from the informal seed system (home saved seed, from neighbour, and local markets).

Farmer

saved Community based Intermediate – local seed businesses

Private

companies Value chain Local food crops

Local varieties

Local food crops

Local markets, input schemes Quality Declared Seed Improved and local varieties cereals, legumes oil crops, simsim, cassava Local food crops

and food cash crops

Agro-dealers and input schemes (Govt and NGOs)

Certified seed Improved varieties (hybrid and OPV) Maize and vegetables Food cash crops

Within commodity value chain (closed) Certified seed and quality planting material Modern varieties Cotton, coffee,

tea, oil palm, and several other cash crops

Cash crops

Informal quality Exchange, barter, and local

markets Exchange, Informal marketing, NGO schemes Informal quality, quality ‘declared’ Local and improved varieties Cereals, pulses, oil crops, bananas, cassava, and potatoes Sorghum, pulses,

and root and tuber crops

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Figure: ISSD Uganda access to seed household survey report

The sustainability of the local seed business (LSB) approach depends on access to required inputs, acknowledgement of the informal and intermediate seed systems under the Seed Act, and being able to understand and act upon the market demand. The circulation of fake and counterfeit seed has hampered farmers’ uptake of quality seed and reduced consumer confidence in commercial seed and as a result, farmers are generally reluctant to buy improved seed at all. Fortunately, the fact that LSBs are closer to the farmers than commercial companies and that they are known with the sub-county governments and NAADS, creates a farmer preference to buy from LSBs.

The intermediate seed system builds on the strengths of the formal and informal seed systems. The intermediate seed system works on entrepreneurial and market based principles producing quality seed that has local demand. This seed could either be formally released varieties or indigenous varieties. The quality control is both done internally through committees and externally by NSCS. The seed will be certified as quality declared seed; but apart from the formal recognition, informal recognition, such as reputation of the seed grower, is just as important.

Niche for LSB seed

There is a trade-off between the aim of food security and business perspective since the most profitable seeds are those with a high commercial value, such as hybrid maize. These seeds are produced by commercial seed companies, while LSBs serve a much more local market. The key added value features for LSBs in seed production at lower commercial value is the proximity to farmers and being able to serve niche markets (low volumes or seed too bulky for seed companies to be profitable). Crops that are suitable for LSB seed production are vegetatively propagated crops, legumes, millet, sorghum, rice, simsim and pasture seed. Farmer saved seed 41% Neighbor 13% Local market 35% LSB 2% Agrodealer 5% Government 2% Project NGO 2%

Acces to seed

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The services that Local Seed Businesses provide to a community are: access to good quality seed of preferred varieties, availability of quality seed at planting time and the introduction of new varieties.

 Using idea cards, provide an overview of the seed systems, crops, target customers, quality control mechanisms, strengths and weaknesses as in the figure above and then discuss where local seed businesses can fit. For example the farmer saved seed system focuses on “food security crops”. This can be written on the idea card and placed in the matrix. Another example of type of crop is “cash crop” for closed value chain. Major crops are: beans, maize, etc. Type of varieties: improved, indigenous, OPVs, Hybrids etc. Type of system: informal, intermediate, formal. Dissemination system: barter, exchange, agro dealers etc. Quality control mechanisms: informal, QDS, certified seed, internal and external. Target clients: Farmers, NGOs, processors, Government, etc.

Use a matrix tool to place the cards: Seed system

Farm-saved seed Community-based (associations) Community-based, NGOs and public National companies International companies Closed value chain Type of crop(s) Major crops Type of varieties Type of system Dissemination system Quality control mechanisms Strengths of the system Weaknesses of the system Target clients Materials

 PowerPoint, flipchart, cards to write aspects of seed systems, markets

Advice

 The matrix can be used during a plenary meeting or in group work if the number of participants is more than 10.

Resource material

 ISSD Uganda seed sector assessment

http://www.wageningenur.nl/web/file?uuid=d4d73c45-f022-4eba-a479-08c448c7a5ad&owner=1a616bd7-d3c1-493f-9533-d5d61aa53e4a)

 Louwaars N.P. and W.S, de Boef, 2012. Integrated Seed Sector Development in Africa: A Conceptual Framework for Creating Coherence Between Practices, Programmes, and Policies. Journal of Crop Improvement, 26:39–59.

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Session 1.2.2: What is an LSB?

After the end of the session the participants shall be able to: 1. Define a Local Seed Business

2. Explain the importance of each building block and how they come together

One of the LSBs in West Nile started in 2007 as a group of ex-poachers that were looking at opportunities to improve their livelihood, they were 15 members; 8 women and 7 man. When they started in 2013, they did not have any prior experience in seed production and marketing. During the first season, they were hesitant to invest, but in the second season they planted 20 acres of simsim seed. They were able to produce 8 tons at a time when the demand for the seed was high. They sold the seed at UGX 4,000 per kilo. The group is getting more and more experience and realise that if they plan their sales better they could even get higher prices per kg as the demand for simsim seed rises until planting time.

Content

A Local seed business is a group of farmers that are able to produce and market quality seed of varieties that are preferred by other farmers and is able to sustain the business through reinvesting capital and effort in the business.

For an LSB to be sustainable it needs to be commercially oriented and able to make the investment. This means that the ISSD programme does not provide free inputs to the groups and is entirely based on capacity building by a seed expert on production aspects of seed and by an agribusiness expert for the market aspects. Some groups that lack entrepreneurial spirit are not able to become sustainable local seed businesses and the programme that supports these groups needs to critically reflect on whether to continue with them.

An LSB is able to be commercially sustainable when they are technically equipped, market oriented, professionally organised and strategically linked to inputs, extension, credit and markets (see picture below). Looking at the LSB with regard to its product, it should be technically well-equipped to produce and add value to its seed. Looking outward, that product should have demand from the market. Looking again at the LSB with regard to its organisation, it should be professionally organised, well managed and with access to appropriate infrastructure. Looking outward from the LSB to its environment, it should be strategically linked to important, reliable and cost-effective inputs and service provision.

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Looking ...

Inward Outward

With regards to ...

Product Technically

well-equipped Market oriented

Organisation Professionally

organized Strategically linked

Technically well-equipped

Being technically well equipped includes having the capacity for (1) the production of quality seed products; and (2) processing/adding value to those products.

Capacity to produce includes LSB members having the knowledge and skills for site selection, field clustering, land preparation, sowing, weeding, roughing, demarcating isolation distances, fertiliser application, crop protection and harvesting.

Market oriented

Market-orientation means that the LSB has the marketing capacity, including assessing markets and developing products which are in demand and satisfying customer needs. Marketing involves finding out what your customers want and supplying it to them at a profit. In order to do so the LSB needs the capacity to collect and evaluate market information, and develop a marketing strategy as part of a business plan.

Professionally organized

Describing how well the business is organised follows a basic distinction between both general organisational (including governance) and financial management, and infrastructure.

The principles of general organisation management include decision making, participation, communication, transparency, task division, coordination and specialisation in the form of truly cross-functional teams (e.g. quality control committee, marketing committee, block farm management, monitoring and self-assessment).

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LSBs that are strategically well linked benefit from the availability, accessibility, efficiency, affordability and reliability of input and service provision. Therefore, being well linked to inputs and services is more strategic than it is essential. An analysis of the availability, accessibility, efficiency, affordability and reliability of the input or service should be critically reflected upon accordingly to the specific capacity needs and business plan of the LSB. Essential links include access to germ plasm, agronomic inputs (inc. fertiliser and pesticides), seed certification, finance, information, technologies, guidance/supervision, materials and machineries, administrative documentation, stationary and furniture, water and electricity, transport, licencing, legal rights, security, lobbying and other important institutional links.

 Start with the “Blue Bean Test” for Baseline and Evaluating Behavioural Change For a better understanding of a farmer group’s knowledge about marketing approaches, a simple test can be applied to find out how they approach the idea of a new product. Do they systematically work with the market or do they simply follow instructions from a service provider. The group is asked if it would be interested in producing “blue beans”. A typical response might be, “Yes, if you will buy them”, to which the facilitator may respond, “No problem, I’ll take all you can grow”. For farmers who do not have a systematic approach to marketing, their response is often a very positive yes, that they will start growing the beans tomorrow!

However, they make this response even though they have never seen a blue bean, nor do they know if it grows in their area, or which market they are targeting, or if alternative and better market options exist. Where the group shows no clear approach to marketing, the facilitator has to start from the beginning. In contrast, if the farmers do have a strategy in dealing with the market, the facilitator should listen carefully and see how well this fits in with the planned seed approach. He or she can then build on the group’s current skills. As a monitoring tool, the “blue bean”, or other invented product, the question should be asked again after the farmers have undergone some training on how to engage the market. If the farmers have taken on the new skills, their response to such a question would include questions such as Does the crop grow here? Can you give us a sample so we can test it to see if it grows under our conditions? What is the price of the blue bean in the market? Is this price higher than the best bean market varieties? Is the bean being sold for a local or international market? Who is buying the product? Can you give us names of some buyers so we can survey the market ourselves? Do you have any information about the product, its price trend, quality requirements, or market trends? If we go into production, will this be a contractual agreement? Will you provide any additional inputs to assist in production? If the market fails, can we eat this crop? (CIAT 2008 A Market Facilitator’s Guide to Participatory Agro enterprise Development p.49)

 Power Point presentation on the building blocks

 Q&A around the purpose of the building blocks and the content of each building block

Materials:

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Advice:

 All four building blocks play an equally important role in supporting LSBs to become commercially sustainable. Therefore make sure that each building block receives equal attention.

Resources:

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Session 1.2.3: What is seed entrepreneurship?

Learning objective:

at the end of the session, the participants will have a general understanding of characteristics of seed entrepreneurship in Uganda and experienced the spirit of an entrepreneur through discussions.

“Entrepreneurship is a strong incentive for investment and development in the seed sector, and can be a catalyst to improve the functioning and performance of seed value chains.”

Content:

Defining seed entrepreneurship

Seed entrepreneurship in Uganda is perceived differently by stakeholders working in the informal, intermediary and formal seed system clusters. In the informal seed system, entrepreneurs are identified as farmers who identify and explore opportunities for seed production of different crops and varieties that are of high demand within the community, and not produced by others. True farmer entrepreneurs, driven by experience, specialization and traditional knowledge, are innovative and creative in their seed selection and conservation practices, as well as in their seed value addition. They look into profitability as well as structures for financial management and support (e.g. group savings).

In the intermediary seed system, entrepreneurs are farmers operating in groups. They gather and share information on seed demand, seed supply and seed prices; information sharing and networking within the group and outside is considered one of the key aspects of entrepreneurship. The groups target specific marketing and distribution channels; they are able to determine market potential, understand the different seed markets, and determine which seed products are profitable and can create income for the community. Marketing as a group also enables better price negotiation. Persistence in seed business efforts is key to entrepreneurship; only groups with a passion will succeed in it. Entrepreneurship in this cluster also includes taking risks as a group and learning from failure.

Key aspects of seed entrepreneurship are:

 Innovation and creativity in product development;  Commercialisation of technologies;

 Opportunity seeking in relation to market demands;  Seed value addition and seed quality;

 Information dissemination; business skills development;  Systematic planning;

 Calculated risk taking; and

 Profitability and income generation.

The topic of innovation was mentioned many times as being key to entrepreneurship. Innovation in all systems is related to the product, i.e. quality seed of unique varieties. In the informal system, the product often concerns quality seed of local varieties; in the other

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system clusters, producing quality seed of improved varieties with a high market demand is key to successful entrepreneurship.

Several incentives have been identified which are believed to promote seed entrepreneurship in Uganda. The key incentives, irrespective of the seed system, are:

(i) Good profit margins for quality seed; (ii) Access to improved varieties;

(iii) An efficient quality assurance system; (iv) Capacity building of seed producers; (v) Access to information; and

(vi) An enabling business environment. (Copied from Uganda seed entrepreneurship assessment)

Stimulating women entrepreneurship

 Constitute equal numbers of men and women in participatory market analysis training. This implies including women from outside the leadership. It also implies a sensitive approach to avoid conflict between male and female members.

 Increase/include women participation in variety selection (to ensure that characteristics of women interest are captured)

 Integrate role plays when hosting field days and encourage both men and women to participate equally.

 Make use of role models of successful women entrepreneurs to interact with LSBs and inspire women in business.

Basic information on the characteristics of entrepreneurial spirit

1. The desire to succeed: In the first days of a business, the enthusiasm generated is very big. The desire to succeed is strong and you benefit from a lot of support. You feel good because of the new seed varieties and the way to produce them. However, you will later have to face some problems which could be droughts, torrential rains, insufficient sales, financial problems. At these moments, you will ask yourself questions on how to maintain your business. If you have strong desire for success, you will quickly find out that such difficulties sometimes emerge and that they can be overcome. Your faith in yourself will allow you to succeed.

2. The ability to take risks: To create one’s own business is always risky and not everybody is ready to take risks. For some people, taking risks even for common things is difficult. These people prefer to count on what they now best instead of trying new things. Others are disposed to take small risks, only after a long reflection and when they can afford it. It is possible to considerably reduce the amount of risks taken in your business with a good knowledge of your business, the market that you supply and the competition. However, some risks like climate, government politics, changes in the nature of the demand, diseases, insects and thefts are out of one’s control.

3. Creating a business sense: You need to understand the business aspects of your activities and learn to manage them. Natural skills to see opportunities and to negotiate are all essential parts of the entrepreneurial mind.

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4. Selling skills: One can learn selling techniques, but it is important to have a certain natural aptitude to sell. You should be able to convince potential clients to choose your seed over other supplying sources (CIAT manual 2 p.19-20).

 Introduce the topic through a PPT on entrepreneurship  Engage in group discussions covering the following questions

o Taking each key aspect of entrepreneurship, provide examples of entrepreneurship in your sub-county.

o Identify a number of entrepreneurs in the vicinity of the group. Which entrepreneurs would you want to visit and why?

 Develop questions for the visit to the entrepreneur

 A visit is organised to the entrepreneur’s work place and participants ask why he has so much success, how he manages his business and if they can visit his business. The group needs to prepare questions in advance.

 After the visit, the trainer facilitates a discussion on the fundamental characteristics of the entrepreneurial spirit

Materials:

 flipchart, markets

Advice:

 It is also good to discuss differences in seed entrepreneurship in different seed systems so that participants realise that LSBs do not necessarily need to develop in formal seed companies, but that there are different skills and capacities required for different types of seed.

Resources:

 Uganda seed entrepreneurship assessment

( http://www.wageningenur.nl/web/file?uuid=308d83c0-8943-4020-b911-dc8aa3f17edb&owner=1a616bd7-d3c1-493f-9533-d5d61aa53e4a)

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Topic 1.3 Selecting local seed businesses

Key messages:

In topic 1.2 we learned what an LSB is and that entrepreneurship is an important aspect of a successful LSB. This topic covers the selection process to find farmer groups with the potential to become commercially sustainable LSBs and identifies strong points and areas of improvement for an LSB using applicable success factors. It also covers the process by which, together with the LSB, the facilitator defines the action plan to address weaknesses during the course of the year.

“Ending up with the right farmer group for a local seed business is a good thing to start with”, says Mbarara Seed Expert. “We used different means to make people aware that we needed farmer groups to participate in the ISSD project such as ZARDI notices, APF-Agri Pro-Focus website and visits to district production departments both at district and sub-county levels in the 8 districts of South Western Uganda. The results were overwhelming with many farmer groups expressing interest. We were careful not to attract conflict of interest from community leaders and politicians and this made our work transparent and well appreciated and all groups were aware they were picked or dropped based on their merit. We used some key indicators to judge these groups such as leadership structure being visible, groups’ experience with seed production, access to land and willingness to invest among others.”

1.3.1 How to make a short list of potential LSBs? 1 hour

1.3.2 What is a diagnostic survey? 3 hours

Supporting Local Seed Businesses : A Training Manual for ISSD Uganda

SUPPORTING LOCAL SEED BUSINESSES

A Training Manual for ISSD Uganda

Supporting Local Seed Businesses

Training Manual

e

Contents

Acronyms

Glossary

Introduction to ISSD Uganda

What makes ISSD Uganda and the LSB approach unique?

Why this manual?

Who is this manual for?

How is the manual organized?

Module

Topic

Session

Session

Topic

Session

How to read/use this manual?

Module 1: Selecting, monitoring and sustaining LSBs

Topic 1.1: Promoting integrated seed sector development

Session 1.1.1 What is the ISSD program in Uganda about?

Session 1.1.2: What are ISSD guiding principles?

Topic 1.2: Defining LSB

Session 1.2.1: Why LSBs?

Acces to seed

Session 1.2.2: What is an LSB?

Session 1.2.3: What is seed entrepreneurship?

Topic 1.3 Selecting local seed businesses